Synopsis : Quarterly earnings continued to drive stock-specific action during midday trade, with HEG and Tanla Platforms rallying sharply while pharma majors came under pressure. Rising crude oil prices also lifted upstream energy stocks amid renewed geopolitical tensions.
Indian equity markets traded lower during midday on July 23, as weakness across heavyweight sectors and cautious global sentiment kept benchmark indices under pressure.
The Nifty hovered above the 23,850 mark, while the Sensex traded near 76,350.
Despite the subdued broader market, company-specific earnings continued to drive sharp moves across individual stocks. Strong quarterly results lifted stocks such as HEG and Tanla Platforms, while disappointing earnings weighed on pharmaceutical companies including Cipla and Dr. Reddy's Laboratories.
Meanwhile, rising crude oil prices kept energy stocks firmly in focus.
Cipla declines after weak earnings
Shares of Cipla slipped nearly 2% during midday trade after the pharmaceutical company reported weaker June-quarter earnings.
Consolidated net profit attributable to shareholders declined 39.2% year-on-year to ₹789.05 crore, even as revenue from operations increased modestly by 2.3% to ₹7,119.28 crore.
The decline in profitability was primarily driven by higher operating expenses, which offset the company's revenue growth.
Dr. Reddy's Laboratories falls on earnings disappointment
Dr. Reddy's Laboratories remained among the biggest losers of the session.
After opening nearly 7% lower, the stock recovered partially but was still down more than 3% by midday.
The pharmaceutical major reported a 69% decline in consolidated net profit, which stood at ₹4,435 crore, compared with ₹14,178 crore in the corresponding quarter last year.
Revenue also declined 5.5% year-on-year to ₹8,070.5 crore.
The company reported a 17% increase in total expenses, largely due to higher freight and logistics costs, while pressure on margins further disappointed investors.
Eternal gains after strong quarterly performance
Shares of Eternal advanced around 2% after the company reported another strong set of quarterly numbers.
Consolidated revenue from operations surged 182% year-on-year to ₹20,211 crore, while net profit increased to ₹92 crore, compared with ₹25 crore during the corresponding quarter last year.
Profit before tax also rose more than 209%, reflecting continued business expansion and healthy growth in the company's food delivery operations.
Tanla Platforms rallies nearly 10%
Tanla Platforms emerged as one of the strongest performers during the session, rising almost 10%.
The cloud communications company reported broad-based growth across key financial metrics.
Revenue increased 17.8% year-on-year to ₹1,226 crore, while:
- Gross profit rose 25.1%
- EBITDA increased 22.7%
- Profit after tax grew 20.1% to ₹142 crore
The company also generated ₹126 crore of free cash flow, equivalent to approximately 89% of reported profit after tax, further strengthening investor confidence.
HEG climbs on earnings and rebranding plans
Shares of HEG gained nearly 6% following better quarterly earnings and progress on the company's proposed corporate rebranding.
Consolidated net profit increased 16% year-on-year to ₹122 crore, while revenue from operations rose 11% to ₹681 crore.
Although EBITDA margins moderated slightly to 22.17%, investors responded positively to the company's operational performance.
HEG also announced that the Ministry of Corporate Affairs has reserved its proposed new name, HEG Advanced Materials Limited, for sixty days.
According to the company, the proposed name better reflects its increasing focus on advanced manufacturing and value-added materials.
Waaree Renewable Technologies falls despite strong annual growth
Shares of Waaree Renewable Technologies declined nearly 6% despite reporting healthy year-on-year growth.
The company posted:
- 37.7% increase in net profit
- 53.2% growth in revenue
- Nearly 48% rise in EBITDA
However, investors focused on the sequential slowdown.
Compared with the March quarter:
- Profit declined 23.6%
- Revenue fell 16.2%
- EBITDA also weakened sequentially
The margin contraction and softer quarter-on-quarter performance outweighed the strong annual growth.
Oil-linked stocks remain in focus
Energy stocks attracted buying interest after Brent crude oil climbed above US$96 per barrel, its highest level in more than six weeks.
The rally followed renewed geopolitical tensions in West Asia, including fresh military strikes involving the United States, Iran and Houthi rebels operating in the Red Sea region.
Higher crude prices generally improve earnings for upstream oil producers.
As a result, companies such as:
- Oil and Natural Gas Corporation (ONGC)
- Oil India
remained among the stronger performers during the session.
Gandhar Oil Refinery locked in upper circuit
Gandhar Oil Refinery hit the 20% upper circuit after reporting exceptionally strong quarterly earnings.
The company reported:
- 638% jump in consolidated net profit
- 92% increase in revenue
- Significant improvement in gross margin spreads
Net profit increased to ₹192 crore, compared with ₹26 crore during the same quarter last year.
Revenue from operations climbed to ₹1,732 crore, reflecting strong volume growth and improved profitability.
The sharp earnings improvement triggered aggressive buying interest throughout the trading session.
Conclusion
Quarterly earnings continued to dominate market action despite weakness in the broader indices.
Strong earnings helped stocks such as Tanla Platforms, HEG and Gandhar Oil Refinery outperform, while disappointing pharmaceutical results weighed on Cipla and Dr. Reddy's Laboratories.
Meanwhile, higher crude oil prices kept energy stocks in focus, highlighting how company-specific developments and global events continue to drive sectoral performance even during volatile market sessions.
Disclaimer : The financial results, market movements and company developments discussed in this article are intended solely for informational and educational purposes. They should not be interpreted as investment advice or a recommendation to buy, sell or hold any security. Stock market investments are subject to market risks, and share prices may be affected by earnings, economic conditions and global events. Investors should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions.
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